Trusteed pension plan assets gained almost 5% in the first quarter, primarily due to market performance, Statistics Canada reported today.

The value of pension plan retirement savings increased for the seventh consecutive quarter during the first three months of 2006, the agency said. The value of fund assets increased to $836.8 billion, 4.7% over the fourth quarter of 2005, it reported.

“The main factor in this upward trend has been the value of stocks traded on the world’s stock exchanges. Except for a small decline in the second quarter of 2004, the value of funds has been rising steadily from lows recorded in 2002 and 2003, a result of falling stock prices,” StasCan said. “Foreign investments performed particularly well, rising 11.4% from the fourth quarter of 2005, more than double the 4.4% gain for Canadian stocks.”

Fund revenue declined 1.7% from a high reached in the fourth quarter of 2005 to $28.4 billion while expenditures fell 1.3% to $9.5 billion. Net cash flow fell 2.% to $18.9 billion.

Contributions in the first quarter of 2006 increased to a record high $9.9 billion, the result principally of a 20.8% increase in employer contributions. Employer contributions totalling $7.6 billion included special payments for unfunded liabilities. Employee contributions declined 8.8%, StatsCan noted.

Benefits paid out in the first quarter amounted to just under $7.3 billion, a 3.8% increase over the fourth quarter of 2005. This level was the second-highest since a $7.4-billion payout in 2004.